Skip to main content

Market Overview

Piper Jaffray Upgrades Renewable Energy After New EPA Proposal


In a report published Monday, Piper Jaffray analyst Brett Wong upgraded the rating on Renewable Energy Group Inc (NASDAQ: REGI) from Neutral to Overweight, while raising the price target from $11 to $15, following the release of the EPA proposal of the Renewable Fuel Standard mandate through 2016/17 on May 29.

"On Friday, the EPA proposed the highly anticipated Renewable Fuel Standard (RFS) volumes for 2014 – 2016/17, proposing sequential growth through 2017. Importantly by the EPA providing multiple years of the RVO removes the regulatory overhang that has historically impacted shares of REGI," Wong said.

In increase proposed in the advanced biofuel category, along with the 20 percent carryover, is expected to drive biodiesel demand "beyond the biomass-based diesel RVO," which is in turn expected to lead to higher margins for the company, despite a potential increase in biodiesel imports.

In addition, margins are also expected to be driven by higher RINs, following the EPS proposal. "In order to subsidize the marginal vegetable oil producers RIN prices need to increase, which we have already seen with expectations the mandate would increase," the Piper Jaffray report added.

Latest Ratings for REGI

Feb 2021HC Wainwright & Co.MaintainsBuy
Jan 2021BWS FinancialMaintainsBuy
Nov 2020Credit SuisseMaintainsOutperform

View More Analyst Ratings for REGI
View the Latest Analyst Ratings


Related Articles (REGI)

View Comments and Join the Discussion!

Posted-In: Piper Jaffray VetrAnalyst Color Upgrades Price Target Analyst Ratings

Latest Ratings

LBCredit SuisseMaintains36.0
TRGPCredit SuisseMaintains40.0
SNOWCredit SuisseMaintains275.0
DARCredit SuisseMaintains95.0
CLRMKM PartnersDowngrades26.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at